Last checked at 26 Jul 2018 07:00
26th July 2018
CMC Markets Plc
Q1 2019 Trading Update
CMC Markets Plc (LSE:CMCX, "CMC" or "the Group"), a leading global provider of online trading, today issues its first quarter trading update for the three months ended 30 June 2018.
Net operating income for the first quarter was moderately above the same period last year, with the Group's focus on premium clients driving an 8% increase in revenue per active client for the period.
As previously guided, costs for the full year will be moderately higher than FY18 as the Group continues to invest in strategic initiatives to drive future growth. Costs for the first quarter are in line with these expectations.
Regulatory changes introduced by ESMA will take effect from 1 August and the Group continues to grow the proportion of UK and European revenue that is generated by elective professional clients. As previously guided, we continue to expect that revenue from these clients will account for at least 40% of UK and European revenue (on a rolling 12-month view). Conversion of clients to elective professional status remains a key focus for the business.
CMC is making good progress developing its white label partnership with ANZ Bank in line with its plan. As part of this transaction, in early July, the Group successfully completed a major delivery milestone with the migration of 103 intermediaries to the CMC Stockbroking platform. The migration of ANZ Bank retail clients, is on track to take place in September.
Peter Cruddas, Chief Executive Officer, commented:
"I am pleased to report that CMC has made a solid start to our financial year. Our strategy of focusing on high value clients, technology and partnerships is supporting the delivery of long term sustainable growth. At the same time, we are successfully diversifying CMC's business model into markets where we can leverage our technology, such as through our growing institutional business and stockbroking partnerships in Australia. We are on track to deliver another successful year in 2019."
Forward looking statements
This trading update may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is considered to be in the public domain.
Enquiries
CMC Markets Plc +44 (0) 20 7170 8200
Grant Foley, Chief Operating and Financial Officer
Camarco +44 (0) 20 3757 4980
Geoffrey Pelham-Lane
Ed Gascoigne-Pees
Jennifer Renwick
Notes to Editors
CMC Markets plc ("CMC"), whose shares are listed on the London Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and is now one of the world's leading online financial trading businesses. The company serves retail and institutional clients through regulated offices and branches in 15 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an award-winning, online and mobile trading platform, enabling clients to trade up to 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs"), financial spread bets (in the UK and Ireland only) and, in Australia, access stockbroking services. More information is available at http://www.cmcmarkets.com/group/